Published 12:51 pm, Friday, November 17, 2017

Backstory: The Great Recession took its toll on the client, who saw dramatic income declines during the real estate crisis.

Incomes varied greatly with swings of more than 20 percent from year to year. Generally, for self-employed borrowers, jumbo lenders take a two-year average to determine the qualifying income.

Liz Bayer was able to find a lender who took the 2016 income as the qualifying income along with a 2017 year-to-date profit and loss statement showing that the client’s income was on track to meet or exceed the filed 2016 income.

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Additionally, the client’s qualifying credit score was less than 700, which is normally prohibitive for many jumbo lenders.

The lender Bayer used has a more lenient approach to credit score requirements by taking a more common sense approach in reviewing the borrower’s credit history. This enabled the client to move out of his variable and volatile mortgage that had climbed to 7 percent into a stable 30-year fixed rate. This lowered his mortgage payment by more than $2,900 per month.